Analyst James Thalacker of BMO Capital maintained a Hold rating on Centerpoint Energy (CNP – Research Report), boosting the price target to $38.00.
Confident Investing Starts Here:
- Quickly and easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
- Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter
James Thalacker has given his Hold rating due to a combination of factors that reflect both the strengths and challenges facing Centerpoint Energy. The company has achieved significant regulatory and political clarity, allowing investors to focus on its robust regulated growth story and potential additional upside opportunities. However, the modest revision of the 1Q25 earnings estimate to $0.52, slightly below the consensus, indicates some caution in the near-term outlook.
Despite the company’s transformation into a leading utility with strong growth prospects, including an 8% EPS growth through 2025 and long-term growth biased towards the higher end, there are still challenges. These include higher operational and maintenance costs, increased operational expenses, and the impact of transition bonds rolling off. Additionally, the company’s current valuation at a 15% premium to its peers suggests limited immediate upside, justifying the Hold rating.
Based on the recent corporate insider activity of 43 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CNP in relation to earlier this year.